Thousands of lower risk homeowners are effectively subsidizing flood coverage for those in higher risk areas, according to a flood map advocacy company.
West Palm Beach-based Flood Zone Correction Inc. said yesterday that low flood risk homeowners in several states contribute more in annual premium to the National Flood Insurance Program than they receive in claims payments, and called on federal lawmakers to help balance out the program.
Policyholders in parts of Florida as well as those in Georgia, Michigan, Illinois, Nebraska, Maine and Idaho continue to contribute more in annual premium payments than they receive in average annual claim payments, the company found. At the same time, homeowners in Alabama, Kentucky, Louisiana and Mississippi receive more in claims than they pay in total premiums.
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